Join Courses
Attend Webinars
Get Free Counselling
  • Select Language
    • Hindi
    • Bengali
+91 9903 222 555
Elearnmarkets - Financial Market Learning
Join Courses Of Elearnmarkets
  • Basic Finance
  • Technical Analysis
  • Fundamental Analysis
  • Derivatives
  • Financial Planning
  • Miscellaneous
No Result
View All Result
  • Basic Finance
  • Technical Analysis
  • Fundamental Analysis
  • Derivatives
  • Financial Planning
  • Miscellaneous
No Result
View All Result
Elearnmarkets - Financial Market Learning
Home Financial Planning
Home loan checklist

Top 7 Fundas to keep in mind while availing a Home Loan

Elearnmarkets by Elearnmarkets
January 27, 2016 - Updated on November 18, 2020
Reading Time: 3min read
2
561
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Buying a house is not a random decision of life.

Availing a home loan either to purchase or construct a house requires a thorough homework on the borrower’s part.

The question arises as to which home loan product would be most suitable for you, which interest rates will fit your budget, what would be the tenure of your loan etc.

The most difficult task is selecting the most suitable option from the varied types of home loan products.

To manage your personal finances effectively, you can take assistance of Kredent Money App.

However, in this article, we have collated few tips that will assist you in taking this decision wisely.

1.Research before availing home loan:

No matter what kind of picture your advisor may portray of the home loan product, it is always advisable to do your own good research.

Always put in your efforts to know about the best deals available in the market.

Speak to a couple of agents; consult your peers who have already availed the home loan and then go ahead to seek the best option available for you.

Interest Rate

Knowing about interest rates:

There are two kinds of interest rates prevailing in the market.

  • Fixed interest rate remains fixed for a certain time period. It is not market linked and the rate is pre-determined as mentioned in the loan agreement.
  • Floating interest rate is market-linked. There is always a base rate following which the floating rate is calculated.

For example, Base rate is 2%.

The floating rate is 3% above the base rate. Hence, the floating interest rate is 2% + 3% = 5%.

In the long term, floating rates, deliver cheaper costs in comparison to the fixed interest rates.

So a borrower should know about the prevailing rates of interest and then go ahead with the home loan product.

Also Read:  Did you know that calculating EMI can be so easy!

Check the Credit Information Bureau (India) Limited (CIBIL) score:

CIBIL rates your credibility with a credit score, basis which you get the home loan. In case your credit score is 750 plus, you can get an easy home loan approval. In case the score is lower than the mentioned credit score, either the loan application is rejected or a higher interest rate is charged from the borrower.

To know more about CIBIL Score join: Credit Appraisal Process Course on Elearnmarkets.

Comparison of processing fee of various home loan products:

The processing fee may seem to be just a percentage of the loan availed. However, the higher the loan amount is, the higher is the amount of the processing fee. Different rates are provided for different home loan products.

Do compare the processing fee of various available options to reduce the aggregate costs of the home loan product.

Watch the video below to know more about points to keep in mind before availing a home loan:

Read the documents carefully:

This may seem to be one of the most tiring efforts on your part. But reading out that the booklet may prevent you from getting any surprises at a later stage.

Kindly read all the terms and conditions before signing the loan agreement in order to enjoy the hassle-free future.

Conservative spending:

Keep a watch on your spending. This means that once you have availed the loan, manage your expenditure, save more and try to pool in the additional funds at the time of foreclosure of the loan.

Usage of additional funds:

When you save more, you also have an option to park your saved funds in the loan accounts. This will help you to reduce your outstanding amount and eventually will levy a lesser burden on the monthly installments.

Bottomline:

Prevention is always better than cure.

Hence, the more you cushion yourself with the above steps, the simpler it becomes for you to enjoy the perks of the home loan.

Plan your dreams & go ahead to build one.

You can also check “Understanding Credit Cards & loans“.

Happy Learning!!

Tags: basiccredit scoreEMIenglishHome loanprocessing fee
ShareTweetShare
Subscribe To Updates On Telegram Subscribe To Updates On Telegram Subscribe To Updates On Telegram
Previous Post

Bank Account – 5 Simple Steps for opening a Bank Account

Next Post

MARKET WRAP for WED, 27th Jan ’16: Nifty consolidates ahead of FOMC statements, powergrid announces quarterly results and more!

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Financial Planning

Fund Manager – Why & How to choose the right Fund Manager?

December 29, 2020
602
Financial Planning

Debt Mutual Funds – Meaning and Types of Debt Funds

October 24, 2020 - Updated on November 18, 2020
327
Financial Planning

5 Products to help us plan for Retirement

October 10, 2020 - Updated on December 2, 2020
765
Best Retirement Plans
Financial Planning

Best Ways to plan a Secured Retirement Planning

September 26, 2020 - Updated on November 18, 2020
276
Next Post
Nifty live

MARKET WRAP for WED, 27th Jan '16: Nifty consolidates ahead of FOMC statements, powergrid announces quarterly results and more!

Mutual fund offer document

Must Read! Crux Of A Mutual Fund Offer Document

Weekly Market Wrap for 29th Jan, '16: Bank of Japan adopts negative interest rate here is what Nifty did in the week!

Comments 2

  1. SakthishaTharsi says:
    1 year ago

    Thanks for this post.I need more details for Research before availing home loan?

    Reply
    • Sakshi Agarwal says:
      1 year ago

      Hi,

      Thank you for Reading!

      Keep Reading

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Download App

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

GET ARTICLES ON EMAIL

Enter your email address:

Categories

  • Banking
  • Basic Finance
  • Bonds & Fixed Income
  • Budgeting & Savings
  • Capital Markets
  • Charts
  • Charts, Patterns & Indicators
  • Commodity, Currency & FOREX Market
  • Derivatives
  • ETFs & Mutual Funds
  • Financial Planning
  • Financial Statement Analysis
  • Fundamental Analysis
  • Macroeconomics
  • Market Analysis
  • Market Updates
  • Market Wrap
  • Marketshala
  • Miscellaneous
  • Open Interest
  • Personal Wealth
  • Retirement Planning
  • Sector Analysis
  • Tax Planning
  • Technical Analysis
  • Trading Terms, Rules & Strategies
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

© 2020 Elearnmarkets All Rights Reserved

No Result
View All Result
  • Article Categories
  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Market Analysis
  • Miscellaneous
  • Technical Analysis
  • Select Language
    • Hindi
    • Bengali
  • Learn finance
  • Browse Courses
  • Webinars
  • Free Guides
  • Get Free Counselling

© 2020 Elearnmarkets All Rights Reserved

Republic Day Offer

Visit Elearnmarkets.com to view the offer